Walmart Vs. Target Stock: Which is the Better Investment as Q4 Results Roll Out

Core Insights - Walmart's Q4 sales increased by 4% year over year to $180.55 billion, slightly exceeding estimates of$180 billion, indicating continued market share growth [2][3] - Walmart's Q4 EPS rose 10% to $0.66, surpassing expectations of$0.65, marking the 11th consecutive quarter of exceeding earnings expectations [3][4] - Target's Q4 sales are expected to decline by 3% to $30.73 billion, with earnings projected to drop to$2.24 per share from $2.98 a year ago [5][9] Walmart's Performance - Walmart's total sales for fiscal 2025 increased by 5$680.99 billion, with annual earnings rising 13% to $2.51 per share [6][9] - For FY26, Walmart anticipates consolidated net sales growth of approximately 3-4$2.50-$2.60, below the current consensus of$2.74 [7][9] Target's Outlook - Target's total sales for FY25 are expected to dip roughly 1% to $106.38 billion, with annual earnings projected to decrease by 3$8.69 per share [9] - Target's sales are forecasted to stabilize and increase by 2% in FY26, with earnings expected to rebound by 7% to $9.32 per share [9] Stock Performance - Walmart's stock has increased over 60% in the last year, significantly outperforming the S&P 500's 21% gain, while Target's stock has declined by 17% [10][13] - Target's stock is currently trading at its lowest valuation in over a decade at 13.7X forward earnings, compared to Walmart's 35.4X [13][15] Investment Considerations - Investors may find Target's stock appealing due to its lower P/E valuation compared to Walmart, while Walmart's growth trajectory remains strong [15]